Impact Of Fracking On The Economy Essay
A. IMPACTS OF FRACKING IN TEXAS ECONOMY
1. OIL & GAS
Texas is well know for its oil and gas production it produces 29 percent of America’s natural gas and 1.7 million barrels of oil a day. Making it the largest producer of gas and oil among all states. Texas is also home to the largest oil field in the country, Eagle Ford Formation; it produces over 1 million barrels of oil per day accounting for more than 50% of the state’s oil production.
2. JOB PRODUCTION
Around 1.9 million jobs are supported by the oil and gas industry in Texas, which represents 13.9% of the total state’s workforce.
3. TAX PAYMENT
Oil and gas interests pay over 10 billion dollars annually in taxes just in Texas. The income tax for oil and gas are estimated to be $2.1 billion and $1.5 billion respectively. Property taxes in 2012 were $3.6 billion and Sales taxes from oil and gas summed 2.5 billion in the same year.
B. IMPACTS OF FRACKING IN UNITED STATES ECONOMY
1. DROP IN GAS PRICES
Natural gas prices have drop 47 percent due to the Fracking revolution in the past years. Gas bills have dropped $13 billion per year starting on 2007 which sums up to $200 per year for gas-consuming households.
The drop in Natural gas prices has benefited all 50 states especially oil and gas producers like Arkansas, Louisiana, Oklahoma and Texas, these four states gained $432 per person in consumer benefits.
2. JOB GROWTH
Since 2003, the direct production of oil and gas has been…